AutoCanada Inc. Announces the Purchase of Volkswagen Dealership

EDMONTON, Jan. 7, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX:ACQ) announced today that it has completed the purchase of the assets of a Volkswagen dealership known as People's Automotive Ltd, located in Grande Prairie, Alberta, to be continued under the name of Grande Prairie Volkswagen. The dealership facility is an approximately 12,000 sq. ft. facility which includes eight service bays and a six car showroom. The dealership has been in operation for over 30 years and in 2011 retailed approximately 110 new and 50 used vehicles. 

"We are very pleased to acquire a Volkswagen dealership and expand our presence in Grande Prairie, Alberta, one of our strongest dealership platforms.  The acquisition complements our 'tuck-in' strategy of adding quality franchises in markets with existing platforms.  The management team at AutoCanada and the Grande Prairie Auto Group would like to extend a warm welcome to the employees of People's Automotive and its valued customers," stated Pat Priestner, CEO of AutoCanada.

Mr. Priestner further commented, "The Volkswagen brand has been gaining significant momentum in Canada over the past few years.  We are very proud to strengthen our partnership with Volkswagen Canada and share in the continued growth and success of the brand."

About AutoCanada

AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 27 franchised dealerships in six provinces and has over 1,100 employees.  AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, and Volkswagen branded vehicles.  In 2011, our dealerships sold approximately 28,000 vehicles and processed approximately 300,000 service and collision repair orders in our 333 service bays during that time.

Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.

About Grande Prairie Auto Group

The Grande Prairie Auto Group is a group of dealerships owned and operated by AutoCanada serving the Grande Prairie and surrounding region.  Since its inception in 1998, the Grande Prairie Auto Group has grown to represent nine brands at its six locations under the leadership of Wes Kaban, Managing Partner, and the dealership management teams in Grande Prairie.  The group is widely known in the Peace Country area for providing a quality selection of vehicles, excellent prices, and exceptional customer service.

Additional information on the Grande Prairie Auto Group is available at www.gpautogroup.com.

SOURCE: AutoCanada Inc.

Jeff Christie, CA
Vice-President, Finance
Phone:  [phone]
Email: [email protected]